# Employee Stock Options

*Retirement & Benefits — Finicade finance glossary*

Employee stock options give the right to buy company shares at a fixed strike price after vesting. Non-qualified options are taxed as ordinary income on the spread at exercise. Unlike RSUs they can end up worthless if the share price never exceeds the strike, which is what makes them a leveraged bet on your employer rather than deferred pay. Expiry windows after leaving a job are typically 90 days and catch people out constantly.

**Also known as:** stock options, non-qualified stock options, NSO

**Related terms:** [Incentive Stock Options](https://finicade.com/glossary/incentive-stock-options), [Restricted Stock Units (RSUs)](https://finicade.com/glossary/restricted-stock-units), [Vesting](https://finicade.com/glossary/vesting), [Strike Price](https://finicade.com/glossary/strike-price)

Source: https://finicade.com/glossary/employee-stock-options